The Governor of the Central Bank of Nigeria CBN Olayemi Cardoso has reaffirmed the apex bank’s commitment to orthodox monetary policy transparency and evidence based decision making as part of efforts to strengthen Nigeria’s economy and restore investor confidence.
Speaking at the opening of the Monetary Policy Committee workshop in Abuja Cardoso said the ongoing reforms introduced by the Central Bank are critical to restoring confidence in the economy and improving macroeconomic ility.
According to the CBN governor the current administration inherited weakened institutional autonomy reduced policy credibility and excessive dependence on unorthodox monetary tools. He explained that such practices blurred the line between fiscal and monetary responsibilities while reducing transparency and limiting the effectiveness of policy interventions.
Cardoso also stated that the foreign exce market was previously opaque and inefficient while poor fiscal and monetary coordination worsened economic challenges. He noted that these structural distortions contributed to rising inflation exce rate inility and declining investor confidence.
The CBN governor however said reforms introduced by the current management have started reversing the negative trend. He explained that the apex bank has restored a more orthodox approach to monetary policy under the current Monetary Policy Committee framework with greater reliance on conventional policy instruments and interest rates as key tools for economic management.
Cardoso added that improvements in liquidity management policy communication and forward guidance have enhanced transparency and helped ilise expectations among businesses investors and households.
While acknowledging that inflation remains high he noted that inflationary pressure has started moderating and exce rate ility has improved in recent months.
The CBN governor also warned against renewed calls for interventionist programmes stating that such measures previously distorted the balance sheet of the apex bank and weakened its credibility.
He reaffirmed the commitment of the Central Bank of Nigeria to transparency institutional strengthening and data driven policymaking as essential pillars for achieving sustainable economic growth and macroeconomic ility.
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